Summaries of health policy coverage from major news organizations

The agreement settles an investigation into four Tenet hospitals over alleged payments to a prenatal clinic operator for obstetric referrals of low-income patients in Georgia and South Carolina. The Tenet hospitals were charged with defrauding Medicaid for the deliveries.

The Associated Press:
Hospital Chain To Pay $513 Million To Settle Kickback Claims
Texas-based Tenet Healthcare Corp. and two of its Atlanta subsidiaries have agreed to pay more than $513 million to resolve criminal and civil claims accusing the chain of paying kickbacks to steer pregnant Medicaid patients to their hospitals. Under a settlement announced Monday, the Tenet subsidiaries that previously operated Atlanta Medical Center and North Fulton Medical Center agreed to plead guilty in federal court to conspiracy to defraud the government, according to a statement from the U.S. Department of Justice. (10/3)

The Wall Street Journal:
Tenet Healthcare To Pay $514 Million To Settle Kickback Allegations
Under the settlement, which must be approved by a court, two Tenet subsidiaries will plead guilty to one count of conspiracy to violate federal kickback laws, the company said. The agreement settles a criminal investigation and civil litigation regarding allegations that four Tenet hospitals paid kickbacks for referrals of low-income patients from an operator of prenatal clinics. (Evans, 10/3)

Modern Healthcare:
Two Former Tenet Hospitals Plead Guilty To Medicaid Kickbacks; $514M Settlement Finalized
Two of Tenet Healthcare Corp.'s former subsidiaries admitted to conspiring to defraud Medicaid by using referral contracts for translation services to funnel pregnant patients through their doors. Atlanta Medical Center and North Fulton Hospital in Georgia each pled guilty to one count of conspiracy to violate federal anti-kickback laws and defraud the United States, Tenet said on Monday, as it finalized a $514 million settlement over its involvement in the scheme. (Teichert, 10/3)

Georgia Health News:
Tenet To Pay Millions Over Fraud Scheme In Georgia
The Tenet Healthcare subsidiaries that previously owned two metro Atlanta hospitals have agreed to plead guilty to conspiracy to defraud federal health programs and pay kickbacks and bribes for patient referrals, officials said Monday. Atlanta Medical Center and North Fulton Hospital in Roswell were owned by Texas-based Tenet until this April, when Marietta-based WellStar Health System bought them. Tenet will pay more than $513 million to resolve criminal charges and civil claims relating to the scheme, federal and state officials said Monday. (Miller, 10/3)

Dallas Morning News:
Dallas-Based Tenet To Pay $514 Million To Settle Whistleblower Lawsuit
Owners and operators of the clinic successfully attracted undocumented pregnant Hispanic women for prenatal care “and were able to control where these women delivered their babies,” the criminal investigation states. The hospital then billed the Medicaid program for the services provided to the referred patients.
"When pregnant women seek medical advice, they deserve to receive care untainted by bribes and illegal kickbacks," said David Bitkower of the U.S. Justice Department's Criminal Division in a statement Monday. The Tenet case, he said, is the first to be brought through the Criminal Division's corporate health care fraud strike force. (Rice, 10/3)

Atlanta Journal-Constitution:
Tenet Healthcare To Pay $513 Million In Kickback Case
The two Tenet subsidiaries previously operated Atlanta Medical Center and North Fulton Hospital. WellStar Health System bought the two hospitals in a deal that was finalized this spring. The two subsidiaries that used to operate the hospitals agreed to plead guilty to the criminal charges and forfeit $145 million, according to the announcement. Tenet will pay $368 million to settle the civil case, which accused Tenet of paying kickbacks to Clinica de la Mama, which served undocumented Hispanic women. The kickbacks were paid in exchange for referring patients to the hospitals for labor and delivery services that were paid for by Medicaid. (Teegardin, 10/3)